Discharge: Frustration

Question 1

What are the steps for frustration?

Answer 1

Define
Common law
Impossibility of performance
Illegality
Radical change of circumstances
Self-induced
Less profitable
Foreseeable risk
Remedies

Question 2

What is discharge by frustration?

Answer 2

Performance and impossibility

Question 3

What is the common law on frustration?

Answer 3

Even if it was impossible to complete, if you don’t complete it, you have breached the contract

Question 4

Which case shows the common law on frustration?

Answer 4

Paradine v Jane

Question 5

What is the equitable rule on frustration?

Answer 5

You aren’t liable for breach if there was an unforeseeable intervening event that prevented them from keeping the promise

Question 6

Which case shows the equitable rule on frustration?

Answer 6

Taylor v Caldwell (impossible to perform)

Question 7

What are the 3 ways a contract can be frutrated?

Answer 7

Impossibility of performance
Illegality of performance
Radical change of circumstances

Question 8

What is the rule on impossibility of performance?

Answer 8

It is frustration where the subject matter becomes unavailable through no fault of the parties

Question 9

Which case shows impossibility of performance?

Answer 9

Jackson v Union Marine Insurance

Question 10

Can a contract for a service be frustrated due to illness?

Answer 10

Yes

Question 11

Which case shows frustration of a service contract due to the unavailability of the party due to illness?

Answer 11

Robinson v Davison
Condor v Baron Knights

Question 12

What is the rule on illegality?

Answer 12

It is frustration where there is a change in the law that makes performance illegal

Question 13

Which case shows performance becoming illegal?

Answer 13

Denny, Mott & Dickinson v James Fraser
Re Shipton, Anderson and Harrison Brothers

Question 14

What is the rule on a radical change of circumstances?

Answer 14

It is frustration if the contract is based on a particular event and this does not take place (unless it was only part of the contract)

Question 15

Which case shows a radical change of circumstances?

Answer 15

Krell v Henry

Question 16

Which case shows a radical change of circumstances not frustrating a contract because it was only part of the contract?

Answer 16

Herne Bay Steam Boat v Hutton

Question 17

When can frustration not apply?

Answer 17

Self-induced frustration
The contract only becomes less profitable
The event was a foreseeable risk

Question 18

What is self-induced frustration?

Answer 18

When the frustrating event was within the control of the party

Question 19

Which case shows self-induced frustration?

Answer 19

Maritime National Fish v Ocean Trawlers

Question 20

What is the rule on a contract becoming less profitable?

Answer 20

A contract becoming less profitable or a contract becoming more difficult to complete is not a reason for frustration

Question 21

Which case shows a contract becoming less profitable is not frustration?

Answer 21

Davis Contractors v Fareham UDC

Question 22

Which case shows it is not frustration if the event was a foreseeable risk?

Answer 22

Amalgamated Investment & Property Co Ltd v John Walker & Sons

Question 23

Which Act has the remedies for frustration?

Answer 23

Law Reform (Frustrated Contracts) Act 1943

Question 24

What are the remedies for frustration?

Answer 24

Money already paid is recoverable and money due is not payable.
Compensation is discretionary and based on quantum meruit.
Compensation may be ordered for any valuable benefit frustrated